Shires Income | Research

Shires Income Trust remains differentiated from other UK equity income products through a c.25% allocation to preference shares currently yielding over 8%. The portfolio positioning leans towards defensive and resilient income as the management team remain cautious over the state of the economy. Fund manager, Iain Pyle, highlights Assura and Lloyds Banking Group as key equity holdings with these characteristics

Iain Pyle, fund manager of Shires Income Trust, provides an update on the performance and positioning of Shires Income Trust. On 26th July 2023, the Shires Income board announced that it had agreed terms with the board of abrdn Smaller Companies Income Trust (ASCI) for a combination of the assets of ASCI and Shires. For more information of the benefits and details of this merger, please visit Doceo to see Iain's merger video.

On 26th July 2023, the board of Shires Income Trust (SHRS) announced that it had agreed terms with the board of abrdn Smaller Companies Income Trust (ASCI) for a combination of the assets of ASCI and Shires. Iain Pyle, sets out the details of the proposed combination and unpacks the benefits to both SHRS and ASCI shareholders.

Shires Income is an investment trust which invests primarily in UK equities. The trust, however, is differentiated to most other UK income portfolios with a holding in preference shares, fixed income, and some overseas holdings. The preference shares in the portfolio have pulled back slightly, but they now yield consistently above 8% with the potential to increase in value as the interest rate cycle develops. Despite the economic backdrop, the trust's equity holdings have been resilient, and fund manager, Iain Pyle, highlights Melrose and HSBC as recent additions which have contributed to performance.